Andalusite facing supply tightness on production issues

• Autores: Davide Ghilotti
• Localización: Industrial Minerals, ISSN 0019-8544, Nº. 595, 2017 (Ejemplar dedicado a: Julio-Agosto)
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • Heavy rain and flooding hit South Africa and Peru and the weather conditions have halted production in the early months of the year. Market participants claim it will be hard to fulfil contracts. Bauxite buyers who are seeking to shift to andalusite meanwhile compound the availability issues.

    The andalusite market is facing a situation of short supply in 2017 following production issues in South Africa and Peru, the two leading origins of the mineral, IM has learnt.

    While andalusite has been characterised by broad balance between supply and demand in recent years, the coming months appear to be holding availability issues for customers.

    Bad weather conditions brought about temporary production halts in South Africa and Peru, which together account for most of global andalusite supply.

    Both countries were hit by heavy rain and flooding, affecting operations in mining areas.

    In South Africa, the single largest supplier, mines could not be accessed between December and February. Imerys and Andalusite Resources are the two main producers active in the country.

    In Peru, the other leading producer other than South Africa, flooding also took place in the period between February and April, local sources confirmed to IM.

    "Production suffered almost three months of stoppage," the Peru-based source told IM. It is understood that over 10,000 tonnes of material could not be produced during the temporary halt of operations.

    Suppliers resorted to existing stocks to cover immediate shipments, but inventories are now reported to be completely cleared.

    Production has now restarted in both countries, but it is taking time for mines to resume full capacity, while delays have been reported on shipments booked for Q1 and Q2.

    A European trader spoke to IM of "an incredible shortage" of andalusite around at the moment, following the weather issues. "There are clear issues in deliveries, and delays in fulfilling contracts," he added.